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Chinese Market Prefers Domestic Smartphones Over Foreign Brands

| Jul 24, 2015 08:16 AM EDT

Domestic smartphones are dominating the market share amid growing competition with foreign brands.

A Chinese official said on Wednesday that Chinese smartphone makers account for more than 70 percent of the domestic market, dominating foreign smartphone makers.

Although foreign tech giants Apple Inc. and Samsung Group are on the top of the list, domestic industry leaders Huawei and Xiaomi grab a bigger portion of the market.

“Chinese smartphone makers Huawei Technologies Co., Xiaomi Inc. and Lenovo Group have all achieved sales growth of more than 30 percent year-on-year in the first half of 2015, and their market share continues to expand,” said Shen Danyang, a spokesman for the Ministry of Commerce.

Zhang Feng, a spokesman for the Ministry of Industry and Information Technology, said that the market share is partly a reflection of China's efforts to upgrade its manufacturing sector.

"Domestic brands dominate China's low-end and mid-range market due to their improved product quality and price advantages," Zhu Dalin, an analyst with IT research firm Analysys International, told the media online newspaper on Wednesday.

Based on data from the China Academy of Telecommunication Research, China's smartphone shipments reached 208 million units in the first half of 2015, up 7.5 percent from a year earlier.

In the second quarter, Xiaomi led the Chinese smartphone market with an 18-percent market share.

According to consultancy IHS Technology, Huawei and Apple followed with 16 percent and 12 percent, respectively.

Analysts said that improved product quality and design, stable relations with telecom operators, and low prices have made Chinese smartphone makers more competitive than their foreign rivals.

Meanwhile, Apple CEO Tim Cook said at a conference call on Tuesday that they remain extremely bullish on China and they are continuing to invest.

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